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CBZ Holdings profits spike

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CBZ Holdings Limited (CBZH) posted a profit after tax of $18,3 million for the half-year ended June 31 2012 indicating a growth of $4,6 million from the same period last year, as the group focused on improving earnings.

In the comparative period profit stood at $13,7 million.

Total deposits and advances for the group stood at $985,7 million and $789,7 million, respectively, in the six-month period while assets for the group were valued at $1,17 billion.

Interest income for the six months period was $67,5 million compared to $48,2 million the previous period. In a statement accompanying its half-year unaudited results, CBZH chairman Luxon Zembe said during the period under review the group focused on enhancing growth and shareholder value.

He said the positive growth rates that were recorded in the economy in 2009 decelerated during the period under review due to liquidity constraints in the economy and lack of long-term funding for the recapitalisation of industries and policy inconsistencies.

“Despite the sluggish growth in both local and world economies, the group’s performance during the half-year was solid,” Zembe said.
“We expect the operating environment to remain relatively stable in the remaining half of the year with the hope that the political players will not betray the nation.”

Zembe said there was need to reduce imports, resuscitate the inter-bank market, enhance exports, attract foreign direct investments and bring the informal sector activities into the formal activities.
The holdings company share price opened the year at 14 cents and reached a low of 5 cents on March 23 and rose to 9,10 cents.
CBZH closed the half-year at a market capitalisation level of $62,3 million with 684 million shares in issue, while at least 30,3 million company shares changed hands during the period under review. Trade on the Zimbabwe Stock Exchange remained subdued for the most part of the period due to liquidity constraints that were still being experienced and uncertainty surrounding the implementation of the country’s indigenisation policy.
As a result the benchmark industrial index closed the first half of 2012 at 131,96 points and the mining index closed the same period at 75,7 points.

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